Defense Budget to Scrutinize Weapons Development Costs and SchedulesFebruary 24, 2009
The Wharton Aerospace & Defense Report last week published a report, “Fixing the Weapons Systems Acquisition Pipeline” about Defense Secretary Robert Gates' push to improve the timeliness and reduce the costs of the Pentagon's weapons development systems. Turning up the heat, President Barack Obama addressed the issue during a prime time speech to Congress and the nation this week. He backed up his words with the 2010 budget, which was released in late February. While the $533.7 billion base budget for the Pentagon does not address line-by-line how the money will be spent on acquiring weapons, it does state that the Pentagon must control costs and cut delays as weapon systems move from design to production, according to the Associated Press (AP). The reforms "will set realistic requirements and stick to them," according to the budget text. Obama recently singled out for attention the $11.2 billion price tag on a new fleet of Marine helicopters to carry the President, a Lockheed contract with costs nearly double its original estimate, according to the Associated Press report. The Government Accountability Office estimated last spring that procurement costs were 26% over original estimates for 72 weapons programs, the AP reported. These cost overruns are likely to lead to cuts in some programs. Sens. Carl Levin, D.-Mich., and John McCain R.-Ariz., introduced a new bill that would make rigorous review of programs mandatory during the design stage. The bill would also appoint a new official to oversee program costs and to evaluate whether the technology works. |
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